ABSTRACT The objectives of the study focus on the impact of motivational factors employed in LAIP between 2005 to 2010 on employees productivity, as well as why motivation failed to improve employees productivity in LAIP. The researcher formulated five hypotheses which were tested. The data for the study were generated from the copies of questionnaires administered to 108 respondents who constituted the sample size of this ix study. However, the following findings were obtained from this study: the employees of LAIP were not properly motivated; they were not adequately paid; recruitment of employees in LAIP is not merit based; LAIP lacks adequate and modern equipment and facilities as a result of government’s inability to fund LAIP sufficiently; employees are not happy because they are not promoted as at and when due. Consequently, all these constitute a stumbling block to high productivity in the organization. To ameliorate these problems, we recommended that the managers of LAIP should ensure that there are qualified and experienced personnel as well as adequate and modern equipment and facilities in LAIP. Management should also ensure that the employees’ inputs balance with whatever they are being given as pay or reward to ensure equity in the organization, among others.